New Rules to Tackle 'Subscription Traps' from January 2027
UKPulse News Desk
New government rules aimed at making it easier to cancel subscriptions and providing clearer information will come into effect from January 2027. Several banking apps and specialist fintech providers already offer tools to help track and manage subscriptions.
- New government rules to tackle 'subscription traps' will be introduced from January 2027.
- These rules will make it easier to cancel subscriptions, require clearer sign-up information, and introduce a 14-day cooling-off period.
- Some banking apps and fintech providers currently offer tools to identify and manage recurring payments.
New government rules designed to combat 'subscription traps' are set to be implemented from January 2027. These changes, announced by the Prime Minister, aim to simplify subscription cancellations, mandate clearer information during sign-up, and introduce a 14-day cooling-off period after trials or certain longer-term contract renewals.
Before these new regulations take effect, several banking apps and specialist fintech providers offer features to help users track and manage their subscriptions. Barclays, Monzo, NatWest, Revolut, Santander, and Starling Bank all have tools within their mobile apps that can identify recurring or subscription payments.
For instance, Monzo and Barclays list recurring payments in their 'scheduled payments' section, while Revolut users can find them under 'payments' and the calendar icon. Starling Bank allows users to stop recurring payments directly within its app, and NatWest and Santander provide links to subscription providers to facilitate cancellations.
Open banking tools, such as Little Birdie, Emma, and Snoop, also provide ways to identify subscriptions by securely accessing financial account information. Some of these services are free, while others offer premium features for a fee.
Why this matters: The upcoming rules aim to provide consumers with greater protection and control over their subscriptions, addressing issues like forgotten free trials and difficult cancellations.
What this means for you: From January 2027, it will be easier for you to cancel subscriptions, and companies will need to provide clearer information when you sign up. You will also have a 14-day cooling-off period after a trial or certain longer-term contracts renew. In the meantime, you can use banking apps or specialist fintech tools to identify and manage your recurring payments.